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Who Needs a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is worth considering for any adult who wants to choose who could make certain decisions for them if they were unable to make those decisions themselves.
You do not need to be elderly, unwell or living with dementia to make an LPA. An unexpected illness, accident or change in health can happen at any stage of adult life. Homeowners, parents, couples, business owners and people approaching retirement may therefore all have reasons to consider putting an LPA in place.
The important point is to plan ahead. In England and Wales, you must be aged 18 or over and have the mental capacity to make an LPA when you create it.
Who Should Consider Making a Lasting Power of Attorney?
There is no particular age or set of circumstances that means someone must have an LPA. However, it may be especially useful if you:
-Own a home or other assets.
- Have savings, investments or financial commitments.
- Have children or other people who depend on you.
- Run a business or have significant financial responsibilities.
- Are approaching retirement or planning for later life.
- Have a health condition that could affect your ability to make decisions in the future.
- Want to choose who could manage certain financial matters for you if necessary.
- Want someone you trust to make certain health and care decisions if you could not make them yourself.
An LPA is essentially about choice and preparation. It allows you to decide in advance who you would trust to act for you if the need arose.
Do You Need an LPA If You Are Young and Healthy?
You may not feel that an LPA is an immediate priority if you are young and healthy, but any adult aged 18 or over can make one, provided they have the required mental capacity.
LPAs are often associated with dementia and later life because mental capacity can become a greater concern as people get older. However, an accident or serious illness could also leave a younger person temporarily or permanently unable to make certain decisions.
Rather than asking whether you are “old enough” for an LPA, consider a more practical question: if you could not make an important decision yourself, who would you want to make it for you?
If you have a clear answer, putting the appropriate legal arrangements in place can provide greater certainty.
When Can an LPA Be Particularly Important?
Everyone's circumstances are different, but certain stages of life can make an LPA particularly worth considering.
If You Own a Home or Have Financial Responsibilities
A Property and Financial Affairs LPA can allow your chosen attorney to deal with specified financial matters. These can include bank accounts, bills, pensions, investments and property.
This may be particularly relevant if you own a home, manage household finances or have other financial commitments that would still need attention if you became unable to deal with them yourself.
If You Are Planning for Retirement or Later Life
Reviewing your future arrangements as you approach retirement can include more than updating your will.
It can also be a useful opportunity to consider who you would trust to deal with important financial, health or care decisions if your circumstances changed later.
Making an LPA while you are able to consider your choices carefully means you do not have to wait until there is an urgent need.
If You Have Been Diagnosed With a Health Condition
A diagnosis of dementia or another condition that may affect decision-making does not automatically mean someone is unable to make an LPA.
What matters is whether the person has the required mental capacity when making the LPA.
This is also why it can be risky to leave the decision too late. Once someone no longer has the mental capacity required to create an LPA, another person cannot simply make one for them.
If Other People Depend on You
Parents and people with other dependants may spend considerable time planning what would happen to their family after their death.
It is also worth considering what would happen if they were alive but unable to manage certain decisions themselves.
An LPA can form part of that wider planning by establishing who would have authority to deal with specified matters on their behalf.
Do You Need an LPA If You Are Married?
Being married or in a civil partnership does not automatically mean your partner can take over all of your financial or welfare decisions if you lose mental capacity.
An LPA allows you to formally appoint the person or people you want to act for you.
Your attorney could be your spouse or civil partner, but it could also be an adult child, another relative, a trusted friend or an appropriate professional.
The important difference is that you make the choice in advance, rather than assuming a family member will automatically have the authority they need.
Do You Need an LPA If You Already Have a Will?
A will does not replace an LPA because the two documents deal with different circumstances.
Your will sets out what should happen to your estate after your death. An LPA concerns decisions that may need to be made while you are alive.
For example, your will can state who should inherit your property, but it does not give your executors authority to manage your finances simply because you become unable to make a particular decision during your lifetime.
This is why wills and LPAs are often considered together as part of wider estate planning.
Which Type of LPA Do You Need?
There are two types of Lasting Power of Attorney in England and Wales. You can choose to make one or both, depending on what you want to plan for.
Property and Financial Affairs LPA
A Property and Financial Affairs LPA can cover matters such as:
-Managing bank and building society accounts.
- Paying bills.
- Managing benefits or pensions.
- Dealing with investments.
- Buying or selling property.
Once registered, a Property and Financial Affairs LPA can be used while you still have mental capacity if you have authorised your attorneys to act.
Health and Welfare LPA
A Health and Welfare LPA can cover decisions relating to matters such as your medical care, daily routine, care arrangements and where you live.
It can only be used for a particular decision when you lack the mental capacity to make that decision yourself.
Our Lasting Power of Attorney service explains the two types in more detail.
What Happens If You Lose Mental Capacity Without an LPA?
If you lose the mental capacity required to make an LPA before one has been created, your family cannot simply arrange one on your behalf.
Depending on the decisions that need to be made, someone may need to apply to the Court of Protection for authority to act on your behalf.
The key advantage of arranging an LPA in advance is that you decide who you trust to act for you and what authority they should have.
This is why an LPA is generally something to consider before it becomes necessary.
How Do You Know If an LPA Is Right for You?
An LPA is not compulsory, and the right decision will depend on your circumstances.
A useful starting point is to ask yourself:
- Who would I trust to make important decisions for me?
- Would that person have the legal authority they need?
- Who could deal with my finances or property if I could not?
- Who would I want involved in decisions about my health or care?
- Would I prefer to make these choices now rather than leave my family to deal with the situation later?
If you are unsure about the answers, it may be worth considering an LPA as part of your future planning.
Frequently Asked Questions
What Age Should You Get a Lasting Power of Attorney?
There is no recommended age that applies to everyone. An adult can make an LPA from the age of 18 as long as they have the required mental capacity. Many people consider one when reviewing their will, approaching retirement or following a change in their health or personal circumstances.
Do I Need an LPA If I Have Very Few Assets?
Not necessarily, but an LPA is not only for wealthy people. Even relatively straightforward matters such as managing a bank account, paying bills or dealing with benefits may become important if you cannot handle them yourself.
Do I Need Both Types of LPA?
Not necessarily. You can make a Property and Financial Affairs LPA, a Health and Welfare LPA, or both. Which option is appropriate depends on the decisions you want to plan for.
Can My Family Automatically Make Decisions for Me?
Family relationships alone do not give someone unrestricted authority to manage another adult's financial or welfare affairs if that person loses mental capacity. An appropriate legal arrangement may be required.
Plan for Who You Would Want to Act for You
You do not have to wait until later life or until your health changes to consider a Lasting Power of Attorney.
The important question is whether you want to choose who could make certain decisions for you if you were unable to make them yourself. Making those arrangements while you have capacity means the choice remains yours.
London Will Writing has helped individuals and families with estate planning since 2007. If you are considering an LPA, you can learn more about our Lasting Power of Attorney service or call 01992 472475 to discuss your options.
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